Indian export offers for hot dip galvanized (HDG) coils have continued to remain stable during the past week at around $850/mt CFR US, amid confusing signals from the US market, traders said on Wednesday, August 27.
"Indian HDG exporters are confused over the US market where prices are showing divergent trends across various flat steel products," a Mumbai-based trader said.
"As a result, US buyers have remained cautious, unsure whether imported HDG prices will be absorbed by the market," he said.
"A few US buyers have informed Indian exporters that they will wait for US flat steel prices to find a definite direction before concluding transactions from the Indian market," he added.
However, a section of market sources have maintained that reports received in India indicate a strong revival in the US steel market and that declines in select flat products are a reaction to pressures from imports, and so Indian HDG exporters will have to get their export pricing correct in order to push volumes overseas.
The sources did not rule out a possible $5-10/mt downward adjustment of HDG offers next month, if the Indian rupee continues to stabilize below the INR 60 to a dollar mark.
No significant transaction volumes for Indian HDG exports have been reported from the Gulf Cooperation Council (GCC) markets, with business activity in the region at a low level, the sources added.